Answer: $962.78
Step-by-step explanation:
Formula of the accumulated amount : [tex]A =P(1+r)^t[/tex]
P= Principal amount
r = rate of interest ( in decimal)
t= time ( in years )
Given, P = $775
t= 3 years
r [tex]=7\dfrac{1}{2}\%=\dfrac{15}{2}\%=7.5\%= 0.075[/tex]
Now, the worth of shares after 3 years would be [tex]A = 775(1+0.075)^3[/tex]
[tex]\\\\ = 775(1.075)^3\\\\= 775\times 1.242296875\\\\=962.78[/tex]
Hence, the worth of the stock = $962.78
